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China rookie portfolio managers see sharp losses after AI selloff

One debut manager at Caitong Fund Management took over portfolios totaling 7.28 billion yuan and saw them fall 36% and 33% between June 11 and July 30 as tech shares slid after earlier gains.

Reported · Written up by our desk · Emerging Markets

China’s newer portfolio managers are experiencing early-career losses after a June market turmoil linked to a global correction in artificial intelligence stocks, according to SCMP Economy.

SCMP Economy said the shock was felt across the Pacific as the article highlighted a case at Caitong Fund Management, where Yuan Zeqiang, who had spent about three and a half years in sell-side research, took over two debut portfolios as a first-time manager.

The outlet reported that Yuan’s portfolios dropped 36% and 33% between his June 11 appointment and July 30, after he inherited combined assets of 7.28 billion yuan, or US$1.08 billion, at the end of the second quarter.

SCMP Economy attributed the rapid drawdown to heavy exposure to tech stocks, which declined after sharp gains earlier in the year.

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